Market research is a crucial step in the startup of your business. This is what will confirm or disprove the viability of your project.
Three factors must be taken into account when conducting your market research: the market in general, your target customers, and your competition. The goal of the exercise is to collect enough information on these three elements to be able to analyze them. That way, you will get a comprehensive picture of the situation in which your new business project or company will be established.
Studying your market in a general sense is essential to the success of your business. To do this, you can:
- Monitor the consumption habits specific to your field;
- Follow the trends;
- Observe the social and economic environment that is most conducive to the target market;
- Etc.
The data you’ve collected will help you determine if the sought-after market is conducive to receiving your product or service, if it’s stable, if a long-term vision is possible, etc.
To conduct your market research successfully, collecting information about your target customers is essential. To do this, you can:
- Conduct surveys (mail, phone, in-person, etc.);
- Bring together one or more focus groups;
- Consult statistical registers, databases, and existing market studies;
- Contact associations and read business reviews related to the sector;
- Refer to specialists;
- Etc.
The factors to be considered when analyzing your information will not be the same if your potential customer is an individual vs. a business.
Analyzing your competitors is an important part of your market research.
Are they established in your region? Do you offer the same products or services? What more do you offer? Where do you stand in your market compared to them? All these questions (and more!) must be taken into account in your market research.
To learn more about your competitors, you can:
- Visit their website;
- Go to their business;
- Consult statistical registers and databases;
- Test their products;
- Read reviews related to the sector;
- Meet with suppliers;
- Attend trade shows, fairs, and exhibitions;
- Etc.
There’s no set-in-stone method for conducting an effective market study, since each business is unique. To get advice that matches your situation, don’t hesitate to contact your SADCs and CAEs.
